BECOMING A UK-REIT 25
8. PREPARING FOR LISTING
Before undertaking an IPO, businesses should weigh up the pros and cons of listing and consider alternative options in relation to the strategic aims of the business. The key stages in preparing for a successful IPO are summarised on the following pages. They are: X Decide upon the most appropriate capital market for the business X Assess market appetite and the anticipated timing of the IPO X Assemble a strong, experienced team of advisors and brokers to manage and advise on the process X Establish an effective corporate governance and reporting structure in line with relevant regulatory requirements. This should include deciding on whether the REIT is to have an internalised executive/management team, an outsourced model, or a hybrid X Construct a robust investment case for future investors X Present a strong financial history (if an existing business) and credible financial forecasts.
While from 1 April 2022, unlisted UK-REITs are an option under certain considerations, there are still considerable advantages to listing a REIT, in particular the access to capital for investment and growth. Preparation work needs to be undertaken up to a year in advance of the planned listing to ensure the company is ready for the process and the added scrutiny of being a listed company. Early in the process, we regularly support with ‘IPO readiness’ assessments to aid businesses with eligibility for listing, choice of advisors, as well as the key considerations, priorities and timings ahead of a listing.
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